North Carolina Down Payment Support Systems

Online Merchant account - These programs will be the Mortgage Credit Certificate along with the Down Payment Assistance System.

Should you qualify for one of these programs and also you purchase a house and December 1, 2009, you can even qualify for the $8,000 tax credit just enacted into law in the Federal Economic Stimulus Plan.

First, who's a first-time Home Buyer? A First Time Home Buyer is someone who has not owned a home within the past three years. Here is the exact same qualifying definition for the $8,000 tax credit.

What's a Mortgage Credit Certificate and Who Qualifies?

A Mortgage Credit Certificate (MCC) is a federal tax credit to help home buyers with average and low incomes.

Should you are eligible for the MCC, you can claim 20% of the interest you pay on your own mortgage as a credit in your federal income taxes. You can save around $2,000 on your taxes.

If you do qualify for 2009, for the MCC, you'll have the ability to join this. This may reduce the tax liability of a buyer's by $10,000.

Who Qualifies for an MCC?

Who qualifies for an MCC is based in your income and also the purchase price of the house you are buying. Household income means the “gross income of the mortgagor and any person expected to live in the home who's 18 years old or older.”

The income and house price limitations that apply in Durham, Orange and Chatham Counties are given below.

MCC Income Limits 1 Individual $61,500 2 Individuals $61,500 3 Men $70,500 4 Men $70,500

MCC Sales Price Limitations New Dwelling $220,000 Existing Home $210,000

Home buyers that need help with their down payment and closing prices might be able to get down payment assistance - or, quite simply, interest-free, deferred second mortgages up to $8,000. The purchaser only needs to pay $1,000 of their own funds and the load would pay as much as $8,000 of the remaining balance.

This program has more stringent income limits than the MCC program summarized above. Like the MCC program, it can be used along with all the new $8,000 tax credit on home purchases between December 1, 2009 and January 1, 2009. The down payment help, nevertheless, can't be applied in combination together with the MCC. This really is an either or scenario.

The income and house price limitations that apply in Durham Orange and Chatham Counties are listed below.

Down Payment Assistance Income Limitations

1 Man $39,950 2 Men $45,650 3 Persons $51,350 4 Men $57,050

Down Payment Assistance Sales Price Limits New Dwelling $210,000 Existing Home $210,000